SPACE Training
Stockscores.com Perspectives for the week ending May 11, 2015
In this week's issue:
In This Week's Issue:
- Stockscores Free Webinars - Investor and Active Trader Webinars this week
- Stockscores' Market Minutes Video - Market Efficiency and Opportunity
- Stockscores Trader Training - SPACE Training
- Stock Features of the Week -
Stockscores Free Webinar - Investing With the Stockscores Approach
Tuesday May 12 - 6:00 pm PT, 9:00 pm ET
Stockscores founder Tyler Bollhorn will highlight how he scans and analyzes the markets for longer term trades suitable for the investor managing their own portfolio.
Click Here to Register
Stockscores Free Webinar - The Stockscores Approach to Active Trading
Wednesday May 13 - 6:00pm PT, 9:00 pm ET
Learn the essential concepts to day and swing trading with the Stockscores Approach. Stockscores founder Tyler Bollhorn will demonstrate the tools and processes that he uses to find short term trades. Plus, learn the economics of active trading and what it takes to make it a career.
Click Here to Register
For a complete list of upcoming webinars, go to www.stockscores.com/webinars
Stockscores Market Minutes Video - Market Efficiency and Opportunity
Most stock, most of the time, are not worth trading. This week, I look at how the efficiency of the market takes away opportunity quickly. Plus, my regular weekly market analysis.
Click Here to Watch
Trader Training - SPACE Training
The ability to analyze a stock chart is essential to trading stocks whether you take a technical or fundamental approach. The chart shows us what all market participants know about a stock.
Most market beating stocks start their strong trends with abnormal price behavior. However, not all abnormal price behavior leads to a market beating trend. The key qualifier of abnormal price action is the stock chart. We can do well if we focus on the stocks trading abnormally out of predictive chart patterns.
That makes it important to understand the Stockscores Principles of Abnormal Chart Evaluation (SPACE). To read any chart, you need to be able to see and understand the following:
Resistance - a ceiling price on the chart, drawn across the price tops. This price level represents the maximum that investors were willing to pay for the company fundamentals in the past. A break through a price ceiling implies positive fundamental change in the company's business.
Support - a floor price on the chart, drawn across the price lows. This represents the minimum that the sellers were willing to take for the company fundamentals in the past. A break down through support implies negative fundamental change.
Optimism - when the buyers are in control of the market, the bottoms will be rising from left to right. This is a sign of optimism.
Pessimism - when the sellers are in control of the market, the tops will be falling from left to right. This is a sign of pessimism.
Price volatility - the wider the range between support and resistance, the more volatile the stock is and therefore, the more uncertain investors are about what the company is worth. When a stock is trading in a sideways, narrow range, investors have confidence that the price of the stock is a valid representation of the company fundamentals.
Abnormal Activity - abnormal breaks from low price volatility imply new fundamentals that may not be widely known. A breakout through resistance, from optimism, from low price volatility is a good signal to buy.
You can learn more about these chart reading principles in the Stockscores Foundation lesson, "The Six Elements of Chart Patterns" found in the Stockscores Education Center.
Whether you are a short term active trader considering intraday charts or a long term investor taking trade signals off of a weekly chart, these six characteristics of chart pattern reading are essential to picking winning stocks.
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Abnormal activity out of predictive chart patterns often leads to market beating trends. This week, I ran the Abnormal Breaks Market Scan for the US and Canadian markets and found a couple stocks that have good potential to move higher in the weeks and months ahead.Back To Top
1. NES
NES has been building an ascending triangle pattern for the past three months and broke out from that today with strong volume. Support at $3.60.
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2. TAXI
TAXI has been stuck under $10.80 for five months but broke through that resistance level with strong volume today. This move also breaks the long term downward trend line on the 3 year weekly chart. Support at $10.45.
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References
Get the Stockscore on any of over 20,000 North American stocks.
Background on the theories used by Stockscores.
Strategies that can help you find new opportunities.
Scan the market using extensive filter criteria.
Build a portfolio of stocks and view a slide show of their charts.
See which sectors are leading the market, and their components.
Disclaimer
This is not an investment advisory, and should not be used to make
investment decisions. Information in Stockscores Perspectives is often
opinionated and should be considered for information purposes only. No
stock exchange anywhere has approved or disapproved of the information
contained herein. There is no express or implied solicitation to buy or
sell securities. The writers and editors of Perspectives may have positions
in the stocks discussed above and may trade in the stocks mentioned. Don't
consider buying or selling any stock without conducting your own due diligence.
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